EVRI, also known as Global Cash Access Holdings Inc , has recently marked a significant milestone by reaching a 52-week high of $13.23 USD. This peak reflects a robust period for the company, showcasing a notable uptrend in its stock performance. Over the past year, EVRI has seen a healthy growth of 6.28%, indicating a steady increase in investor confidence and a positive response to the company's strategic initiatives. The achievement of this 52-week high serves as a testament to EVRI's resilience and potential for growth in a competitive market.
In other recent news, several developments have unfolded for Everi Holdings (NYSE:EVRI). The company has experienced a series of stock rating revisions following its announcement of an acquisition by Apollo Global Management (NYSE:APO) and plans to merge with International Game Technology (NYSE:IGT)'s Global Gaming and Play Digital businesses. Stifel and B.Riley have maintained their Neutral ratings on Everi, while Raymond James and Truist Securities have downgraded their ratings from 'Strong Buy' to 'Market Perform' and reduced their price targets, respectively.
The merger aims to enhance product offerings and expand market presence, with the transition expected to be finalized between late 2024 and early 2025. B.Riley has also adjusted its EBITDA estimates for Everi, reflecting a cautious outlook on the timeline for product transitions within Everi's games business. The revised EBITDA projections are set at $325.4 million for 2024 and $346.9 million for 2025, marking a decrease from the previous forecasts.
Everi's first-quarter results showed a decrease in its Games segment but growth in its Fintech cash access services. Adjusted EBITDA fell to $80.3 million from $92.5 million in the same quarter of the previous year. However, the company anticipates revenue growth and a return to growth in Fintech revenues in the second half of 2024. These are the recent developments for Everi Holdings.
InvestingPro Insights
EVRI's recent achievement of a 52-week high aligns with several key insights from InvestingPro. The stock's strong performance is reflected in its impressive 47.04% price return over the last three months, as reported by InvestingPro Data. This surge has positioned EVRI near its 52-week high, with the current price at 99.85% of that peak.
InvestingPro Tips highlight EVRI's "impressive gross profit margins," which is supported by the data showing a gross profit margin of 80.39% for the last twelve months as of Q2 2024. This robust profitability metric underscores the company's operational efficiency and could be a contributing factor to investor confidence.
While the stock has shown strong momentum, it's worth noting that EVRI is trading at a relatively high Price to Book multiple of 4.59, according to InvestingPro Data. This valuation metric suggests that investors are placing a premium on the company's assets, possibly due to growth expectations or market optimism.
For readers interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for EVRI, providing a deeper understanding of the company's financial health and market position.
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